The The Effect of Current Ratio and Debt to Equity Ratio on Company Value with Return on Asset as Intervening Variable in Food and Beverage Companies Listed on the Indonesia Stock Exchange for Period 2017-2020

Abstract

The food and beverage sector is a sector that is in great demand by investors, considering that business developments in this sector continue to experience significant growth, which is the main attraction for local and foreign entrepreneurs to invest in this sector. The rapid development of the food and beverage sector will make companies compete with each other in order to maintain and increase company value. This effort is certainly a problem for the company, because it relates to the funds that will be used. The purpose of this study was to examine and analyze the effect of the current ratio and debt to equity ratio on firm value through return on assets. The method used in this research is quantitative research, and the nature of the research is explanatory. The data collection technique used is documentation. The types and sources of data are secondary data in the form of financial statements of companies in the food and beverage sector published by the Indonesia Stock Exchange for the period 2017-2020. The research data was tested using Partial Least Square (Software Smart PLS). the conclusion of this study is that the current ratio and debt to equity ratio have no effect on company value. Return on assets is not able to mediate the effect of the current ratio on company value. Return on assets is able to mediate the effect of debt to equity ratio on company value.